𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The FTSE 100 edged higher on Monday on a mixed day for stocks in London, as US markets recouped some of Friday’s hefty falls and investors weighed another day of uncertainty in the Middle East.

The FTSE 100 closed up 5.15 points, 0.1%, at 10,373.20. It had earlier traded as low as 10,319.17.

The FTSE 250 ended down 47.31 points, 0.2%, at 23,013.43, while the AIM All-Share fell 3.68 points, 0.5%, to 793.59.

Oil prices gave back some early strong gains as Iran said it was ending its latest military operation against Israel after the first exchanges of fire between the foes since a shaky ceasefire began.

US President Donald Trump earlier on Monday told both Iran and ally Israel to stop fighting, against the background of reports of an increasingly testy relationship between the US leader and Israeli Prime Minister Benjamin Netanyahu.

Iran fired dozens of missiles at Israel overnight and Israel responded by targeting military sites in the Islamic republic, sparking fears the escalation could usher in a new full-scale conflict after the April 8 truce.

“Israel and Iran must immediately stop ‘shooting’,” Mr Trump wrote on his Truth Social network.

He later added in a new post that “final negotiations” towards peace were proceeding “subject to ignorance or stupidity getting in its way”.

Brent crude for August delivery traded higher at 94.75 dollars a barrel on Monday, up from 93.70 dollars at the time of the equities close in London on Friday, but below earlier highs of close to 98 dollars a barrel.

In European equity markets on Monday, the CAC 40 in Paris ended down 0.2%, and the DAX 40 in Frankfurt closed 0.6% lower.

In New York, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was 0.8% higher, and the Nasdaq Composite climbed 1.5%, rallying after Friday’s heavy falls.

Analysts at Morgan Stanley said Friday’s “correction” was “inevitable and ultimately healthy if this bull market is going to extend into year-end, which remains our baseline with an 8,000 S&P 500 target”.

US equity markets on Friday were spooked by a strong jobs report which seemingly put an end to hopes for interest rates cuts across the pond, and put rate hikes firmly back on the table.

“Hopes have been dashed for the two key things investors desperately wanted – an end to the Iran war and interest rates not to go up,” said AJ Bell analyst Dan Coatsworth.

“The market was taken aback by the robust US jobs data last Friday and that’s once again changed interest rate expectations. Markets are now pricing in a greater chance of a Fed rate hike this year,” he added.

Goldman Sachs was among those reappraising expectations.

It has pushed the final two rate cuts in its US Federal Reserve forecast back to June and December of 2027 although it continues to see rate hikes as unlikely.

“We think the most natural path for the (Federal Open Market Committee) is to delay further cuts until the effects of tariffs, the war, and AI demand have faded and core PCE inflation nears 2%,” Goldman said.

The pound traded at 1.3339 dollars on Monday afternoon, down from 1.3371 dollars on Friday. Against the euro, sterling eased to 1.1561 euros from 1.1583 euros on Friday.

The euro traded a touch lower against the greenback, at 1.1539 dollars on Monday against 1.1542 dollars on Friday. Against the yen, the dollar was trading at 160.12 yen, lower than 160.27 yen.

The yield on the US 10-year Treasury stretched to 4.56% on Monday from 4.54% on Friday. The yield on the US 30-year Treasury widened to 5.02% from 5.01%.

Gold traded at 4,330.27 dollars an ounce on Monday, down from 4,336.06 dollars on Friday.

Back in London, fears that interest rates will stay higher for longer kept housebuilders on the back foot.

Barratt Redrow fell 2.4%, Persimmon dipped 2.5% and Berkeley Group declined 2.8%.

On the FTSE 250, Tate & Lyle soared 15% as it recommended an acquisition bid from US peer Ingredion.

The London-based maker of food and beverage ingredients said it had received a cash offer for 595 pence per share, plus dividends.

The cash offer values Tate & Lyle’s equity at £2.7 billion.

Elsewhere, recruiter Hays firmed 4.2% as it doubled the size of its share buyback programme to £10 million from £5 million.

But Mpac plunged 20% as it warned it expects full-year underlying pre-tax profit to be “substantially below” current market expectations on a like-for-like basis.

The Tadcaster, North Yorkshire-based high-speed packaging and automation solutions company said trading margins have continued to be hurt by delays in customer decision making, competitive pricing pressure, and lower operational leverage from reduced volumes.

Audioboom was also in the red, down 14%, after ending discussions with potential suitors, stating the proposals “undervalue the company and its prospects”.

The London-based podcast producer said this was despite the fact that all of the indicative offers were at a premium to the closing share price of 540 pence per share on October 2 2025, the last day of trading prior to the company entering into an offer period.

Last October, Audioboom announced a strategic review to look at options, including a possible sale of the company.

Since February, three interested parties have submitted non-binding indicative proposals to make a cash offer for the firm.

But following the company’s announcement in April of record trading results for the quarter ended March, Audioboom now considers that the level of offers received “undervalue” the company and its prospects, given its accelerating performance.

The biggest risers on the FTSE 100 were Entain, up 14.4p at 569.8p, Intertek, up 115p at 5,570p, BT, up 3p at 204.5p, British American Tobacco, up 65p at 4,469p and Vodafone Group, up 1.45p at 111.85p.

The biggest fallers on the FTSE 100 were Scottish Mortgage Investment Trust, down 42p at 1,438p, Berkeley Group, down 98p at 3,392p, Persimmon, down 27p at 1,041.5p, Barratt Redrow, down 6.2p at 253.4p, Lion Finance, down 210p at 10,340p.

Tuesday’s global economic calendar has consumer confidence data in Australia, trade figures in Canada and China plus the BRC retail sales monitor report in the UK.

Tuesday’s local corporate calendar has a trading statement from housebuilder Bellway.

Contributed by Alliance News